Market report: Monday close

HEAVY turnover was recorded in takeover target Woolworths as the stores group prepared to throw open its books to potential bidder Apax Partners. More than 125m shares changed hands and the price dipped 1p to 54&frac12;p, including a parcel of 9.67m at 54&frac34;p.

Bridgewell Securities told clients it had downgraded Woolies from buy to neutral with the share price near its 12-month target of 55p.

The broker expects the move from venture capitalist Apax to go ahead and warns that there are unlikely to be any counter offers to provide further momentum. Apax has until 6 May to make a formal bid.

Bridgewell points out Royal Bank of Scotland is lead bank for Woolies and is also providing the debt financing for Apax. 'It is very familiar with Woolworths' credit risk,' says Bridgewell. Analysts will no doubt keep a close eye on full-year profit numbers from Woolies, due on Wednesday.

Share prices generally made an encouraging start to the week despite the threat from the rising price of oil. The FTSE 100 index closed 10.2 points up at 4933.5.

Sentiment was underpinned by news that Britain's biggest life assurer, Prudential, down 1&frac14;p at 480p, has begun switching out of the corporate bond market and re-investing the money in equities. It reckons there is better value in the stock market and that the increased risk is worth taking. Wall Street was lower in early trading this afternoon.

Lloyds TSB rose 1&frac12;p to 478&frac12;p after a line of 27.5m shares went through on the ticker at 479p.

Satellite broadcaster BSkyB, up 14p at 577&frac12;p, benefited from bullish comments by broker Credit Suisse First Boston. CSFB has told clients Sky's third-quarter new subscriber numbers due to be reported on 4 May will easily beat forecasts of between 60,000 and 70,000. It reckons the figure will be nearer 90,000.

GlaxoSmithKline shrugged off an early fall to trade 8p dearer at 1232p. US broker Citibank has downgraded its recommendation from buy to hold.

Chris Wright's independent radio broadcaster Chrysalis says it is considering making an offer for the radio assets of Guardian Media Group, which includes the Jazz FM station and various regional operations.

Chrysalis is said to have made an initial offer of £100m for the business back in January. Weekend reports said it had increased this only last week, but that it had also been rejected. Guardian Media admits it has received a number of offers but says none fully reflects the true value of the business. Chrysalis traded 1&frac14;p down at 174&frac12;p.

Floors 2 Go slumped 9&frac12;p to 74&frac12;p following a breakdown in bid talks prompted because the sides could not agree on price.

Rank rose 6p to 278p, fuelled by growing takeover talk. Director Ian Dyson, who last week announced plans to jump ship and join Marks & Spencer, has sold 278,225 shares at 273p. Speculators say venture capitalists will bid for Rank once the group has sold its video duplication arm later this year.

Vislink hardened &frac14;p to 31p after narrowing pre-tax losses from £3.37m to £809,000 while leaving the payout to shareholders unchanged at 0.2p. The group, which makes radio and satellite transmission products for the broadcasting and security industries, is confident about prospects for the current year.